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| Since
the late 1980s, Progressive Casualty Insurance Company has maintained
a stronghold on the nonstandard auto-insurance market (auto insurance
for high-risk drivers). Progressives goals were to expand
its insurance coverage to include standard and preferred customers
(drivers with clean driving records and no accidents). The company
never advertised before 1994; as a result, consumer awareness has
been very low. Progressive faces strong competition in a varied
insurance industry. Companies like Allstate, the nations largest
underwriter of nonstandard auto insurance, and State Farm, with
21.1 percent total market share, present a challenge to Progressive
as the company strives to make its products available to all drivers.
The case focuses on building the companys brand through advertising
and enhancing product differentiation through technology. |
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